Professional Report

associated services the provide. This funding is equalized by means of the state share index and is

transferred to the lead school district. Expressed in mathematical terms the funding calculation

amounts to:

(All Career Tech FTE) X $236 X (State Share Index)

Capacity Aid [Section 3317.0218 and Section 3317.0218(A)(10)]

This is a new funding component that was added to the foundation formula in FY16. The purpose

of this funding stream is to increase the equity of the system by providing additional support to

school districts with weaker tax bases. One area of interest to school funding experts is to compare

school districts’ ability to raise local taxes on per‐mill basis. Districts with strong property valuation

bases are able to raise more in taxes by passing 1 mill of taxes relative to those whose property

valuation base is weaker. This funding is targeted to school districts that fall below the statewide

median in terms of taxes generated from 1 mill levy placed on of their 3‐year average property

valuation. The calculation of this funding is predicated on the one hand, on the ratio of the

statewide median 3‐year average valuation times 1 mill, to the same measure for the district and

on a universal 3‐year valuation per pupil figure pertaining to the districts that fall below the

median. The steps involved in this calculation are as follows:

Step 1

: For each school district calculate what 1 mill tax applied to the 3‐year average valuation

would generate. For this purpose the 3‐year average valuation combines the values for TY14, TY13

and TY12. The mathematical representation of this step is as follows:

[(TY14 Value + TY13 Value + TY12 Value) / 3] X 0.001

Step 2:

Identify the statewide median value for the measure calculated in Step 1.

Step 3:

For the districts that fall below the statewide median, calculate the Capacity Ratio by

dividing the value of the measure at the median point by the district measure and subtracting 1

from the result.

(Step 2 Value / Step 1 Value) – 1

<Limit the result of the above calculation to the minimum of 0 and the maximum of 2.5>

Step 4:

Calculate the average of the FY16 formula ADM for all the districts that fall below the

statewide median in terms of the measure calculated in Step 1.

Step 5

: Calculate a universal Per‐Pupil Capacity Aid by dividing the measure determined in Step 2

by the measure determined in Step 4.

Step 6

: Calculate capacity aid by multiplying the capacity ratio by the per‐pupil capacity aid by

formula ADM by the factor of 2.75.

(Capacity Ratio) X (Per‐Pupil Capacity Aid) X (Formula ADM) X 2.75